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|Subject: Will the Whizzers Win?||Date: 7/2/2008 2:15 PM|
|Author: Daryll40||Number: 13016 of 68218|
I apologize as I have posted this type of thing here before, but it was a while ago. I just cross posted this on CAMPFIRE version as well. I felt the need to do so here since many of you are my old friends from the original REHP board, before we became split over politics.
I have been thinking a lot lately about "the rest of my financial life". I am 48 and have pretty much made "the right" financial decisions (not without mistakes). I earn a big income from my own business and have always saved about half of it. I try to squeeze $1.50 out of every dollar and always have. I live well but at about half the level of friends in a similar situation. I'll call them "the Whizzers" (as in "whizzing" away all of their money.
I am wondering if THE WHIZZERS will win. It seems that my type is under total attack from all sides. Inflation pressuring the family budget on one end, financial assets melting away on the other end. One political party just drooling at the opportunity to make my type the whipping boy and tax the hell out of us, with the other party probably going to have to do something similar albeit with less joy in doing so.
If I save 10 million dollars (just a number that I pulled out of the air) over 30 years and THE WHIZZERS save 1 million thru forced savings like 401K and home equity, but that 10 million melts down to $5M (and their $1M melts to $500,000), who wins? Sure, I'll have $5M vs their $500,000, but it cost me $10M to save $5M. Granted, hedonism is not the total key to happiness, but it seems like they are being greatly rewarded for their spendthrift ways while I am being punished severely.
So do I want to spend the next 17 years (to age 65) on the same track? And if I quit saving, will my CURRENT savings survive the next 4 presidential terms, in tact, after inflation and taxes?
Let's talk about this!
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